Wardwizard Innovations & Mobility currently has a network comprising 750+ dealers-super dealers spread across 50+ cities in 19 states and Union Territories. The co., jointly with its Promoters & Promoters’ Group, has acquired 4 Mn sq. ft. of land to develop India’s first-ever EV ancillary cluster near the newly inaugurated global headquarters in Vadodara. About 20 major EV parts/ components will be manufactured in the Wardwizard EV ancillary cluster. The company has started its battery assembly line with a capacity of 1 gigahertz per year, and it has signed an MoU with Singapore-based Sunkonnect for R&D and identification of potential partners as well as to develop the roadmap to set up the 1 gigahertz self-production plant at Wardwizard electric vehicle ancillary cluster in Vadodara.

🌠IndiaMART InterMESH Study


IndiaMART InterMESH (IndiaMART) is India’s largest online B2B product and services platform, set to sustain strong growth momentum as businesses are increasingly leveraging online channels for efficient procurement. A large and growing number of buyers and suppliers on the platform are driving up business enquiries, further increasing its attractiveness. The platform is unique as it enables two-way interactions—suppliers can post their listings and buyers too can post their request for quotations (RFQs). This helps IndiaMART generate high-quality leads for suppliers and gauge supplier behaviour, particularly their responsiveness. While the portal is free for buyers, it charges suppliers for premium listing of supplier storefronts and access to buyer RFQs. Over the years, it has widened listings to 95,000+ product categories spanning 7.5 million supplier storefronts and delivers 88 million unique business enquiries from 170 million registered buyers. The company has successfully acquired 100% ownership of Busy infotech in April 2022 for ₹500 cr. Busy is one of the largest accounting software companies in India. It was incorporated in 1997 and has a pan - Indian presence. It had revenues of ₹42.4 cr and a profit after tax of ₹11 cr in FY21. Apart from this, the company has also made few more acquisitions: (1) 26% stake for ₹104 cr in IB MonotaRO Private Limited, an ecommerce platform for business supplies (2) 16.5% stake for ₹91 cr in Fleetx Technologies Private Limited, a freight and fleet management software helping fleet operators and businesses digitize logistics operations through IoT based analytics services (3) 51% stake for ₹46 cr in Finlite Technologies Private Limited, which offers digital integration with mobile-based applications, analytical tools, and APIs for integration with ecommerce platforms over existing on-premise accounting software.

While most suppliers on their platform are registered for free, the company generate revenues by offering paid subscription packages to 2,03,000 suppliers i.e., less than 3% of their overall suppliers listed on the platform. Most of the subscription paying suppliers first subscribe to a Silver subscription package, and then subsequently upgraded to a higher value package and premium subscription of Gold & Platinum. All their subscription packages are offered on an annual or multi-year basis. Only the Silver package is offered on a monthly subscription. The subscription fees is collected upfront in advance, irrespective of the duration of their package. Higher tier packages provide better visibility and more RFQs to suppliers, leading to an increased number of business enquiries for them. Upgrades to premium subscription packages improve the ARPU (Average Revenue Per User) of their overall business which is ₹46,000 in FY23.

#SALES #GROWTH

In FY23, the revenue grew by ~30.8% YoY and stood at ₹985.4 cr. The growth was a combination of increase in the paying subscriber by 20% YoY to 2,03,000 and an improvement in ARPU (Annualized Revenue per Paying Subscriber) by 4.5% YoY to ₹46,000. Busy reported a strong growth in revenue by 22% YoY to ₹43 cr in FY23. It sold ~30,000 licenses during the year. In 9M FY24, the revenue grew by ~23.1% YoY to ₹882 cr. The growth was a combination of increase in the paying subscriber by 9% YoY to 2,12,000 v/s 1,94,000 and an improvement in ARPU (Annualized Revenue per Paying Subscriber) by 12.5% YoY to ₹55,100 v/s ₹49,000. Busy reported a strong growth in revenue by 33.8% YoY to ₹42.4 cr. It sold ~23,000 licenses during 9M FY24.

5 Year CAGR: 19.1%

#EBITDA #GROWTH

In FY23, EBITDA stood at ₹268 cr, a de-growth of 13% YoY. In 9M FY24, EBITDA stood at ₹243 cr, recording a growth of 20.6% YoY. The company continued making growth investments in manpower, product & technology, sales & servicing resulting into growth in revenue and paying subscription suppliers.

#NETPROFIT #GROWTH

In FY23, PAT increased by ~3.8% YoY and stood at ₹322 cr. However, adjusting for the loss in share of associates the net profit de-grew by 4.6% to ₹284 cr. During the year, the other income had a one-time gain of ₹67 cr on account of the sale of investments made in ProcMart. In 9M FY24, PAT stood at ₹265 cr. However, adjusting for the loss in share of associates the net profit grew by 3% to ₹235 cr. Other income decreased by 11% YoY, as there was one time gain on account of sale of investment in 9M FY23.

5 Year CAGR: 38.9%

#EBITDA #MARGIN

In FY23, EBITDA margin was ~27.2%, a sharp contraction on a YoY basis. The EBITDA margins in 9M FY24 stood at 27.6%, aided by increased manpower cost and other investments towards growth in business.

#NETPROFIT #MARGIN

In FY23, this metric contracted and stood at ~32.7%. The PAT margins in 9M FY24 stood at ~26.6% (v/s 31.8% in 9M FY23).

#ROCE

Since the company was reporting an EBITDA loss over FY14-18, hence ROCE was negative. However, from FY19 the company was able to turn profitable on account of strict cost control (primarily in the advertisement expenses). ROCE for FY23 has contracted as compared to previous year and stood at 19.3%. This was on account of operating efficiencies and significant increase in the average capital employed.

#MANAGEMENT

The management’s current focus is protecting the paying subscriber count and also increasing sales by bringing in more subscriber count. Better ROI for the suppliers will help the company upgrade the user slab to a higher service and hence improving ARPU and profitability. Along with this, the management shall continue to invest in product innovation to serve evolving needs and improve matchmaking and its relevancy on the platform. Their focus is on developing solutions that are uniquely aligned with the specific needs of IndiaMART users.

#SHAREHOLDING #PATTERN

The promoter group shareholding stood at 49.21%.

FIIs shareholding decreased to 23.08% in Q4 FY24 as compared to 24.16% in Q3 FY24.

Non-institutional shareholding decreased to 17.11%.

Top Public Shareholding :

Westbridge Crossover Fund LLC 2.52%

UTI Flexi Cap 2.40%

Arisaig Asia Fund Ltd 2.39%

ICICI Prudential Technology Fund 2.25%

Madhup Agarwal 1.55%

#FUTURE #OUTLOOK

Paying subscribers retention remains a key monitorable: Increased business transaction in the post covid period is a huge opportunity for the company to grow its sales and increase the number of paid subscribers. The company is even looking forward to grab this opportunity and increase its investments to elevate its sales. • Indiamart is looking forward to make more investments towards increasing growth and sales of the business. Hence the margins and ARPU is expected to be subdued in the short term. However, in the long term, the company’s margins might increase by a healthy percentage. • Going forward, further increase in employee base over the next year will be in line with the growth in the number of customers at IndiaMART as well as other businesses. monthly subscription plan, which generates lower ARPU. • Management commentary: They expect better customer acquisition than the current run rate due to a higher focus on the acquisition and efficient channel utilization. They also expect ~15%-20% paying subscriber growth in FY24, while the average revenue per paying subscriber (ARPU) would grow at a slower pace since the majority of the first time customers are into the • Threat from Udaan: UDAAN was incorporated in 2016 and with its unique business model and services, it has acquired huge response from the market. With its efficient logistic services and other facilities, the company has won trust from its customers. However, the company is currently running under losses and has not been able to reduce its operating expenses. • Strategy towards Busy: The company successfully acquired 100% stake in Busy infotech for ₹500 cr. As of now, for a year or two, we would still continue to focus on growing Busy first before looking at these cross-sell opportunities for IndiaMART coming in from Busy.

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1️⃣ Hindustan Aeronautics

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2️⃣ Bharat Electronics

Established in 1954 in association with CSF France, the company is now a government aerospace and defence company.

3️⃣ Bharat Earth Movers

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4️⃣ Mazagon Dock Shipbuilders

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Case Study

🫧SHEELA FOAM LIMITED 🫧

Sheela Foam Limited (SFL) was incorporated in 1971 and it is a top player in the mattress and foam products industry in India. It is the largest polyurethane (PU) foam manufacturer in India. Its flagship brand Sleepwell was launched in 1994 and this brand has established itself in major overseas markets too. Its flagship household brands Sleepwell for mattresses, Feather Foam for pure PU Foam, and Lamiflex for polyester foam laminates have achieved global recognition. The company has strong presence in West & North regions of India. It acquired Kurlon Enterprises Limited (KEL) in 2023 and now commands the de-facto leadership in the branded mattress segment with more than 30% market share. It also acquired 35% stake in Furlenco, (a platform to rent/buy branded furniture) to foray into branded furniture market.
The combined entity (SFL +KEL) now has a global

The combined entity (SFL +KEL) now has a global manufacturing footprint with 21 nationwide manufacturing plants in India, 5 in Australia, and 1 in Spain. They have an integrated manufacturing facility of 1,29,000 MTPA in India, 11,000 MTPA Australian manufacturing capacity, 22,000 MTPA Spain manufacturing capacity (catering to Europe & US markets) and 17,000 MTPA of Kurlon. It has a robust distribution network and with KEL's acquisition now it has 100+ exclusive distributors, 6,100+ exclusive brand outlets (EBO's), and 12,000+ multi-brand outlets (MBO's). Currently, it is focusing on establishing the 12th manufacturing plant in Maneri near Jabalpur, which will specialize in foaming and foam processing. As on 31st March 2023, the company has six subsidiaries and five step down subsidiaries. It has a subsidiary, Joyce Foam Pty. Ltd (Joyce Foam) in Australia. Joyce Foam IS the largest producer of foam (~40% market share) in Australia and supplies its foam to global mattresses and furnishing companies and serves a variety of markets, including bedding, furniture, medical, and specialised industrial applications. In addition, the company has one more overseas subsidiary, Interplasp in Spain which caters to 1% of Europe's market.

PRODUCT PORTFOLIO

Mattresses segment includes foam mattress, spring range, technology range, comfort cell range, back support range, flexi puf range, showroom range, economy range, Sleepx online brand.

Technical Foam Segment includes the following- 1) Automotive foams- Seat cover, sound absorption systems, sun visors, headliners, etc 2) Reticulated foam- Filtration systems, ceramic foam filters, outdoor furniture, microphones and headphones, safety fuel tanks, ink cartridges. G Ultra Violet Stable foam- Sportswear, innerwear & lingerie, clothing, swimwear, comfort accessories for shoes. P slientech foam- Automotive, diesel generator canopies, theatres, auditoriums, indoor stadiums, broadcasting rooms & recording studios, industrial silencers, engine testing rooms, etc.
Furniture foam includes an array of furnishings such as sofa sets, chairs, custom sofas, sofa- cum-beds, and more. Its furniture cushioning range includes Sleepwell Resitec (it uses advanced high resilience cushioning technology which provides personalised comfort experience), Sleepwell Cool Gel (particles used herein are a scientific breakthrough in furniture and cushioning that dissipate heat easily and offers cooling) and Primo (incorporates unique cushioning composition and extra thickness for enhanced comfort and support).
Comfort foam and home care products includes foam sheets, foam blocks, comfort range accessories, foam cores, furniture cushions, pillows, bedsheets, comforters/ blankets, mattress protectors, sofa-cum-beds.

SALES GROWTH

In 9M F¥24, the net sales was ₹2,137 cr v/s ₹2,144 cr in 9M FY23, a decline of 0.4% YoY. In India, it sold 15 lakh units of mattresses in 9M FY24 v/s 15.1 lakh units in 9M FY23. Technical foam and comfort foam observed
strong growth in volume terms for 9M FY24. The revenue for Kurlon in Q3 FY24 was ₹175 cr (for 72 days). International business registered steady revenue on a YTD basis.
5 Year CAGR: 7.5%

EBITDA GROWTH
In FY23, the EBITDA declined to ₹297 cr. The decline was owing to high cost inventory and rise in employee benefit expenses. Toluene diisocyanate (TDI) and Polyols are key raw materials of the company and are derived from petroleum products.
In Q4 FY23, TDI & Polyol prices stood at ₹231/kg and ₹130/kg i.e., exhibiting YoY a decline of 1.8% and 27%, respectively

PAT GROWTH
In FY23, the profit stood at ₹203 cr and saw a decline of 7.3% YoY. Tax rate in FY23 was 25.6%. In 9M FY24, the net profit stood at ₹126 cr v/s ₹157 cr in 9M FY23, witnessing a decline of 19.7% YoY. This can be attributed to increase in depreciation expenses and finance cost owing to the acquisition of KEL.